Fawkner Property’s General Manager of Funds Management Stuart Fox said the transaction was a fantastic result for both parties.The deal was successfully negotiated off-market by Simon Rooney, Head of Retail Capital Markets – Pacific at CBRE Asia Pacific.
One of Australia’s leading Essential Services asset managers, Fawkner Property has acquired a dominant double supermarket anchored shopping centre located within the thriving Cairns Region. The asset which has been acquired off market, is known as Stockland Cairns (The Centre). Fawkner Property acquired the centre in recent days.
Located on the Bruce Highway, the main southern arterial road accessing Cairns with annual vehicular traffic of 13.4m vehicles, the centre has a landmark landholding of 111,3000sqm.
The centre is anchored by two strong performing supermarkets, being Coles and Woolworths with combined sales of over $91m. The centre is further supported by 3 further major tenants, 11 mini-major tenants including JB Hi-Fi and Rebel sport, as well as 97 specialty tenants and 7 pad sites. The strong tenancy mix is dominated by national retailers which represent 89% of total centre GLA and 83% if centre income.
Fawkner Property’s General Manager of Funds Management, Stuart Fox said the transaction was a fantastic result for both parties given Fawkner’s strict focus on Essential Service assets and community-based town centres, “in a market that has moved a lot in recent months, we are delighted to acquire such a prominent and high performing centre that is heavily weighted towards Essential Services tenants. CBA have been a great partner in financing the transaction.”
The deal was successfully negotiated off-market by Simon Rooney, Head of Retail Capital Markets – Pacific at CBRE Asia Pacific. The deal was transacted at the 30 June 2021 book value of $146 million, reflecting a core capitalisation rate of 6.75%. The deal is expected to settle in Q3 FY22.
The Centre will form part of Fawkner Property’s diversified Essential Service Trust No.17 (EST17) which will be available to investors in the first half of calendar year 2022. The centre, as well as the broader EST17, is financed by the Commonwealth Bank of Australia’s Corporate Bank, a trusted Fawkner Partner. The trust will take Fawkner’s assets under management to over $1.5bn in Essential Services funds offering investors consistent, reliable monthly income.
To request a sales analysis please contact the selling agent Simon Rooney, Head of Retail Capital Markets – Pacific at CBRE via the below contact details.